Sioux Steel moving forward with redevelopment plans

Sioux Steel has taken the first step toward redeveloping its 11-acre downtown Sioux Falls property.

The manufacturer plans to seek rezoning of the area from heavy industrial to a form that would allow a mix of uses, including commercial and residential.

Sioux Steel has been located at the property off East Sixth Street since 1918.

“At this point, 100 years, it’s time for Sioux Steel to find another home,” president and CEO Scott Rysdon said.

“With the addition of the Levitt and other amenities, it’s a good opportunity to get the people of Sioux Falls more access to the upper falls and just a better overall experience.”

Sioux Steel is starting the planning process in the hope of gaining input from its neighbors and the broader community, said Jon Jacobson, head of the Sioux Falls Confluence office who is helping with the zoning and final development plan.

“The owner wants to be open to working with the community. There’s no specific team or anybody they’re currently working with. It’s wide open, and we want to find the best possible fit for what makes sense on the site.”

The area is surrounded by Falls Park and the nearby Uptown development, Raven Industries and the Harvester Building.

“The strategy right now is to go out to the neighbors and partners in the upper falls area to create a vision that encompasses a larger tract than our 10.75 acres for a combined strategy for what’s best for the city,” Rysdon said.

The development likely will be phased, he added, starting with about 3 acres on the front one-third.

“This is the heart of redevelopment downtown,” Jacobson added. “This is very significant. I’m not trying to overstate anything. This project is within a half-mile walk of some of the biggest landmarks downtown.”

A time frame for development will depend on which partners are secured and what approach Sioux Steel takes in moving its operations.

“It could be as soon as this fall, or it could be next summer,” Jacobson said.

Sioux Steel also has a location in the Lennox area and owns additional property there but hasn’t decided where it will move operations.

“We have told our employees we have the possibility of building on our Lennox property, so we are considering it but have not made a decision,” Rysdon said.

Between 80 to 100 people work at the Sioux Falls location, he said.

“At 100 years, the highest and best use of the property is for the people and the development of Sioux Falls,” he added. “It’s just time.”